Why I'm Bearish on One of the World's Biggest Sports Teams

Manchester United (MANU) is probably one of the biggest sporting brands in the world. Despite the clubs underperformance on the field, it has managed to attract many sponsors. However, the club’s performance on the pitch is still abysmal. Manchester United have failed to win their last eight games and their current manager Louis Van Gaal is expected to be sacked soon.

I recommend investors to stay away from the stock till Manchester United appoint a new proven world class manager.

Who will be the next manager?

There are three primary candidates who are rumored to replace Van Gaal at Manchester United.

They are:

Jose Mourinho

Pep Guardiola

Ryan Giggs

Mourinho and Guardiola are proven world-class manager, whereas Giggs is a Manchester United legend who has no managerial experience. I strongly believe that the appointment of Mourinho or Guardiola will take the club forward and will also be good for long-term investors and the club’s future.

Winning trophies is important for a club to attract sponsors and world class players. And both, Mourinho and Guardiola have consistently won trophies for the teams that they hae managed throughout their career.

However, Giggs has no managerial experience and is in contention for the job only because he has served at Manchester United as a player for over 20 years. As Giggs is only 42 years old and has been at Manchester United his whole life, many people see him as the long-term solution to Manchester United’s managerial problems.

However, I am very skeptical and worried about the appointment of Giggs. Although Giggs has had a wonderful career for Manchester United as a player, I think appointing him would be a big mistake and will take the club backwards. Giggs has no managerial experience and would struggle to attract world class players as opposed to the other two candidates.

Giggs has been a world class player and has played his entire career under Ferguson, but that doesn’t guarantee his success as a manager. Many world class players have tried their hand at managing clubs they once played for and have failed miserably.

For instance, Alan Shearer was appointed as Newcastle United’s manager, but he ended up getting the club relegated. Similarly, Kenny Dalglish’s, a Liverpool legend, spell as Liverpool’s manager was also disastrous.

There are many more examples, which is why I think Manchester United need to go for the safer options. I am confident that both Guardiola and Mourinho will attract world class talent and win trophies. In the long-run, winning trophies is important for Manchester United as it will help them build their brand and attract lucrative sponsorships.

Conclusion

Manchester United will destroy the club’s brand if they stick to Van Gaal or appoint Giggs as replacement. As someone who has grown up watching Giggs play, it hurts to say that he will not be a good manager. However, after over two years of mediocrity, Manchester United are in no position to take a risk and should appoint a world class manager and I would recommend investor to stay away from the stock till then.